What is Berachain?

The purpose of Berachain is to tackle liquidity fragmentation and offer a novel consensus model that reimagines blockchain consensus and token utility. Berachain aims to become the next big Layer 1 blockchain while addressing the liquidity issues present in other blockchains by building the solution directly into its governance model. The project aims to secure the network, drive user growth, and ensure price stability by boosting liquidity and making it easier to access.

Berachain's technology is based on a modular framework called BeaconKit, which introduces the CometBFT, a blockchain consensus engine for Byzantine fault-tolerant applications, to any EVM execution environment. Berachain's execution layer is identical to the Ethereum Virtual Machine (EVM) runtime environment seen on Ethereum Mainnet, which means that it uses existing unmodified execution clients like Geth, Reth, Erigon, Nethermind, and more to handle executing smart contracts and supports all the tooling that comes native with the EVM.

Berachain differentiates itself from competitors through its unique Proof of Liquidity (PoL) consensus mechanism, which incentivizes participants to provide liquidity to the network, thereby securing it and attracting new users and potential validators. Berachain's PoL allows users to stake assets without fully locking them up, maintaining liquidity in circulation, which is a competitive advantage over traditional Proof of Stake (PoS) models. Berachain is also EVM-identical, which means that any Ethereum upgrade can immediately be implemented on Berachain as well.